Sales figures rekindle hope

HARD-pressed motor dealers are feeling cautiously optimistic about the future, following the release of the November new vehicle retail sales figures by the National Association of Automobile Manufacturers' of SA.

“Even though the retail sales figures remained muted… the general feeling of dealers is that they are slightly more hopeful than they were a few months ago,” said Mark Dommisse, the chairperson of the National Automobile Dealers' Association.

The dealer retail sales figure of 33 547 units was 5% above the October figure, but 3.8% lower than November last year. Dealer sales equated to 85% of total sales.

“What we need to know now is what direction the government is going to take to handle the growing number of coronavirus infections while preserving a recovering economy,” Dommisse said.

He said the pricing of pre-owned vehicles was holding up well, but there was a concern about a decrease in the supply of used vehicles.

“Fortunately,we have the rand holding up against the dollar as well as a stable oil price. The looming wage dispute between the government and the trade unions could affect the economy. With economic uncertainty, customers are wary of spending on big ticket, durable items.

“Another problematical area is the backlog in renewing vehicle and driver's licences as well as the threat of the rigorous Aarto regulations taking effect without amendment.”